China and Ecuador Sign Free Trade Agreement

May 15, 2023 Posted by China Briefing Written by Qian Zhou Reading Time: 3 minutes

China and Ecuador have signed a free trade agreement (FTA), which is expected to deepen ties between the South American nation and the world’s second-biggest economy.

China-Ecuador FTA

On May 11, 2023, Chinese Minister of Commerce Wang Wentao and Julio Jose Prado, Ecuador’s Minister Of Production, Foreign Trade, Investment, and Fisheries, signed the FTA between the Government of the People’s Republic of China and the Government of the Republic of Ecuador on behalf of their respective governments via video link.

The China-Ecuador FTA was concluded in the “most efficient way”, according to Mr. Prado. The joint feasibility research for the FTA began in September 2021 and concluded in January 2022, significantly faster than other FTA negotiations. Both countries have committed to carrying out their respective domestic procedures to expedite the implementation of the agreement.

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In recent years, China and Ecuador have made remarkable progress in economic cooperation, resulting in a significant increase in bilateral trade. In 2021, China-Ecuador trade amounted to US$10.95 billion, a 44.5 percent growth from the previous year. As a result, China has become Ecuador’s largest trading partner for two years in a row. In 2022, bilateral trade between China and Ecuador reached a record high of US$13 billion, with a year-on-year increase of nearly 20 percent.

The China-Ecuador FTA is expected to play a positive role in promoting sustained, stable, and diversified trade and investment development between the two countries, taking their bilateral economic cooperation and trade to new heights.

As of writing this article, the text of the China-Ecuador FTA is unavailable. However, according to the Ecuadorian government, the agreement will enable Ecuador to export 99.6 percent of its products to China without tariffs. Notably, products such as shrimp, bananas, quinoa, cut flowers, cocoa, and coffee hold significant growth potential under the new arrangement. The agreement is projected to boost Ecuador’s non-oil exports by up to a third over the next 10 years.

China’s free trade agreement network

With the signing of the China-Ecuador FTA, China has expanded its FTA arrangements to include 27 countries or regions, including the 10 Southeast Asian countries (i.e., ASEAN nations). Furthermore, China is currently engaged in negotiations for 10 additional FTAs and is considering another eight.

Status of China FTAs

For a complete overview of China’s FTA framework, please refer to the table below:

Countries/Regions with FTAs with China
FTA	Countries	Status
China-Ecuador FTA	Ecuador	Signed
China-Nicaragua FTA	Nicaragua	Early harvest arrangement signed
RCEP	ASEAN (10), China, Japan, South Korea, Australia, New Zealand	Signed and effective
China-Cambodia FTA	Cambodia	Signed and effective
China-Mauritius FTA	Mauritius	Signed and effective
China-Maldives FTA	Maldives	Signed
China-Georgia FTA	Georgia	Signed and effective
China-Australia FTA	Australia	Signed and effective
China-Korea FTA	South Korea	Signed and effective
China-Switzerland FTA	Switzerland	Signed and effective
China-Iceland FTA	Iceland	Signed and effective
China-Costa Rica FTA	Costa Rica	Signed and effective
China-Peru FTA	Peru	Signed and effective
China-Singapore FTA	Singapore	Signed and effective
China-New Zealand	New Zealand	Signed and effective
China-Chile FTA	Chile	Signed and effective
China-Pakistan FTA	Pakistan	Signed and effective
China-ASEAN FTA	Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam	Signed and effective
Mainland and Hong Kong Closer Economic and Partnership Arrangement	Hong Kong	Signed and effective
Mainland and Macao Closer Economic and Partnership Arrangement	Macao	Signed and effective
China-Taiwan ECFA	Taiwan	Signed and originally expired in September 2020

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